Insurance- Property section 2

Which of the following would not be covered by the Terrorism Act?A: CGL
B: Workers' compensation
C: Surety insurance
D: Health insurance

D: Health insurance

Each of the following elements is necessary for formation of a legally valid contract EXCEPT:A: Consideration
B: Agreement
C: Signatures of each party
D: Competent parties

C: Signatures of each party

Which element of an insurance contract requires that the insured have the legal capacity to make a contract?A: Agreement
B: Legal object
C: Consideration
D: Competent parties

D: Competent parties

All of the following statements are true about a representation EXCEPT:A: A policy is usually voided if a misrepresentation is of a material fact
B: Representations are sometimes given orally
C: A representation of a fact is the same as an expression of opinion
D: It usually appears in an application

C: A representation of a fact is the same as an expression of opinion

In which company may policyholders receive policy dividends when there is a profit?A: Mutual
B: Stock
C: Service
D: Assessment

A: Mutual

An insurance company owned by its policyholders, who receive a return of unused premiums in the form of policy dividends, is a(n):A: Stock company
B: Fraternal insurer
C: Mutual company
D: Assessment insurer

C: Mutual company

Failure to disclose known facts when filling out an insurance application is an act of:A: Aleatory action
B: Impersonation
C: Estoppel
D: Concealment

D: Concealment

In the formation of a legal contract, each party must give something of value. Under contract law, this is referred to as:A: Indemnity
B: Consideration
C: Agreement
D: Adhesion

B: Consideration

In which company may stockholders share in the profits and losses of the insurer?A: Assessment
B: Stock
C: Mutual
D: Service

B: Stock

All of the following statements regarding concealment are false EXCEPT:A: If concealment is suspected, the burden of proof is on the insured
B: Concealment involves answering a question without intent to defraud
C: Concealment is never grounds for rescission of a policy
D: Concealment is the failure to disclose any material fact

D: Concealment is the failure to disclose any material fact

When a property insurance applicant makes a statement on an application that becomes part of the contract and includes a promise by the insured, the statement is considered to be a:A: Warranty
B: Waiver
C: Representation
D: Condition precedent